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The Commonhold and Leasehold Reform Act 2002 introduced a right enabling leaseholders to take over the management of their building by setting up an RTM company. Leaseholders do not have to prove that the current landlord or property manager is at fault. The RTM company assumes full management responsibility for the building and is free to appoint any property manager of its own choosing. Right to Manage was first exercised by leaseholders in retirement estates in 2006.

It is intended to put power and control back in the hands of leaseholders, thereby driving up the standards of leasehold management and providing leaseholders with the statutory power to resist exploitation by less scrupulous managers and freeholders.

Legally, you do not need a majority to proceed. As long as at least half the leaseholders in your block of flats are in support the Right to Manage process can proceed. However, to continue with only 50% support could be divisive and in practice when the benefits of Right to Manage are explained to all leaseholders most will support the idea.

All reputable managing agents should undertake to operate to a code of practice. The Association of Residential Managing Agents (ARMA) adopts the code of practice of the Royal Institution of Chartered Surveyors (RICS). The Association of Retirement Housing Managers (ARHM) has its own government approved code. For retirement estates we generally advise against any managing agent that is unwilling to commit to the ARHM Code of Practice. In addition, our standard management agreement includes the obligation not to take undisclosed commissions on any of the services provided, guaranteeing that leaseholders get the best value for money.

Yes, thousands of leaseholders in blocks of retirement flats have already taken this step with RTMF assistance. They now employ professional management of their own choosing, providing better services and considerable savings in service charges.